The International Monetary Fund (IMF) has forecasted a 4.3% expansion in Burundi’s economy for the current year, a notable increase from the 2.7% growth observed in 2023. The projection was articulated in a statement released by the IMF on Monday, wherein the organization emphasized that the anticipated growth would be driven by robust agricultural production, strategic investment activities, and the ongoing implementation of economic reforms. The IMF further acknowledged that fuel shortages had impeded economic activities in the preceding year.
Burundi, with a population of 12 million, heavily relies on revenue generated from its agricultural sector, particularly from tea and coffee production.
The East African nation faced a scarcity of foreign currency subsequent to a political crisis in 2015, prompting international donors to suspend aid. In 2022, the economy grappled with inflationary pressures resulting from the Russian-Ukrainian conflict, leading to a surge in both food and fuel prices. Financial support was reinstated by the European Union, with a corresponding commitment from the United States to provide aid.
As of the conclusion of 2023, Burundi’s foreign exchange reserves amounted to $96.4 million, equivalent to 0.8 months of import cover. The IMF noted that inflows from remittances and gold exports provided some relief to the economic challenges faced by the nation.
